China was the fastest growing diamond market after the United States

The appeal of the rings and earrings with gemstone inserts, which were fashionable luxury items in the 1980s and 1990s, faded as the population grew old and the economy weakened. In a country where there are no mines and which was the second largest buyer in the world less than a decade ago, the volume of exports of used diamonds rose to 77 percent, the Treasury Department said.

"I want to spend money on travel or dinner, and not just keep the diamond in the closet," said the 64-year-old housewife, who asked to be named after her maiden name, Mitsuko, after selling her diamond ring weighing two Carat in the store Komehyo Co. In the crowded area of Shinjuku in Tokyo. She refused to say how much she received for him, but she said that less than she paid 30 years ago.

As the population shrinks and the number of pensioners grows, the market for used goods expands in Japan, as people get rid of luxury goods acquired during the heyday. The exchange of precious stones for yen also coincides with Prime Minister Shinzo Abe's plan to stimulate purchases and reduce savings, as the government is trying to revive the economy, which is still recovering after the soap bubble in asset prices in the early 1990s -ies.

A Healthier Lifestyle

About 25 percent of the population in 2013 was over 65, which is higher than 12 percent in 1990, according to the Statistics Bureau of Japan. For some people, for example, Mitsuko, exchanging for cash means getting rid of unnecessary things to lead a healthier lifestyle, this concept is known as "danshari". Others sell legacy jewelry or practice "shukatsu" - preparing for their own death, said Shuzo Takamura, executive director of the Japan Re-Jewelry Council.

Since 2009, the market for second-hand goods has been growing by about 10 percent per year, reaching 1.5 trillion yen ($ 12.1 billion), and it's more convenient for people to sell to stores, Takamura said.

The number of dealers authorized to trade in used precious metals, jewelry, clothing and other goods has increased by 23 percent over the past decade, reaching 741,045, according to the National Police Department. During the same period, Komehyo, founded in 1947 in Nagoya, expanded from five to 24 stores.

Record volume of exports

The weakening of the yen also makes Japanese diamonds and jewelry more attractive to buyers coming from abroad, said Naoto Owaki, senior manager of marketing and sales at Komehyo. Over the past 12 months, the yen has fallen 18 percent against the dollar, the worst indicator of the exchange rate against the dollar among 12 countries in Asia. This currency rose 0.1 percent against the dollar, reaching 123.63 at 8:10 am in New York.

The volume of polished exports from Japan in the first four months of 2015 jumped 77 percent to 38,032 carats from the same period last year, and the highest level was recorded in 2007, and the cost more than doubled to a record level of 3.01 billion yen , The ministry said until 1988. India and Hong Kong were the main buyers in terms of volume, each of these countries account for about one-third of the total.

Last year, China was the fastest growing diamond market after the United States, according to De Beers SA, the world's leading diamond and diamond seller. Japan, ranked second to the financial crisis of 2008, now ranks fourth after the United States, China and India.

The driving force of growth

Most of the demand in China is provided by the developing middle class, according to a statement by Paul Gait, a London-based analyst from Sanford C. Bernstein.

"The Chinese diamond jewelry market has the potential to become a huge driver of the overall growth in demand," Geith wrote in an April report.

India, where sales are growing as revenues grow, is also the center for diamond polishing and polishing in Asia.

Vaibhav Bhandari, 24, a Japanese-born trader with diamonds from India, buys diamonds at auction four times a month in Okachimachi, the center of jewelry wholesale in Tokyo, for sale to jewelers from Mumbai and Hong Kong.

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